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Characteristics of Rural Markets
Characteristics of Rural Markets
Characteristics of Rural Markets
According to the 1991 census, the rural population constitutes about 74% of the total population in our country.
While the population went from 55 crores (1971) to 85 crores (1991), the rural-urban proportion have remained
more or less the same as in 1971. There are states like U.P, M.P, Bihar, Rajasthan and Orissa where rural
population varies from 80 to 90 percent. Therefore a large population gives an opportunity for marketing a variety
of goods and services. However income and purchasing power play a major role in determining the demand in
rural areas.
Occupation pattern:
Agriculture and related activities continue to be the main occupation for majority of the rural population. Land is
the major source of income for about 77% of the population. Others are engaged in business (10%), non-
agriculture labour (9%), salary earners (2%) and not gainfully employed (2%). It is evident that rural prosperity
Literacy level:
It has been estimated that the rural literacy level is 36% compared to 62% in urban areas. Literacy is one of the
important factors in developing awareness and knowledge about technological changes. As many as 16 major
Low income, low purchasing power, overall social and economic backwardness lead to low standard of living. In
Media reach:
The media reach in rural household is low. Statistics indicates that the reach of Print media is 10%, followed by
TV 31%, Radio 32% and Cinema 36%. Therefore the marketer has to consider rural specific promotion media
Communication facilities:
About 20% of the six lakh villages are without telephone facility even today. This includes Rajasthan (17600
villages), MP (14200 villages), Maharashtra (12000 villages), Gujarat (7000 villages), and AP, Assam, Orissa
about 6000 villages each. (Source: The Indian Express dated 30.3.2003).
Transportation facilities:
About 50% of the markets are not connected by road. Most of the roads are kachha and become unusable during
rainy season. Many farmers use bullock cart for transporting their produce from village to the market. This means
Rural electrification:
The main objective is to provide electricity for agricultural operations and for small industries in rural areas. About
5 lakh villages (77%) have electric supply and this has increased the demand for electric supply and this has
increased the demand for electric motors, pumps and agricultural machinery.
Medical facilities:
Medical facilities are quite inadequate and the villagers have to travel long distances for getting medical
treatment.
Distance:
Village nearer to towns has elements of the urban life. Interior villages are more traditional.